A funny thing happened on the way to cannabis legalization: illegal pot is still big business.
In the decade since the first states legalized recreational marijuana, about half the country has moved to allow adults to buy regulated pot from authorized sources. But in some states, that’s been more theory than practice.
In New York, which legalized marijuana in 2021, retail sales are dominated by ubiquitous illegal “smoke shops,” while the state struggles to license legitimate ones. Governor Kathy Hochul has called the transition “a disaster,” and has pledged to crack down on the illegal sellers.
In Maine, the congressional delegation last summer asked the Justice Department for help in combatting illegal cannabis producers, who outnumber the state’s licensed operations and are believed to be funded in part by Chinese investors.
Wilson Linares, commander of the L.A. County law enforcement division of the California Department of Cannabis Control, heads to the location to serve a search warrant on an unlicensed cannabis store in Long Beach, Calif., on March 5, 2024.
And in California, where voters approved recreational pot in 2016, state officials readily acknowledge the industry still operates mostly in the shadows.
“The black market is very pervasive and it’s definitely larger than the legal market,” says Bill Jones, the head of enforcement for the state’s Department of Cannabis Control.
California is the biggest example of the unfulfilled promise of a legitimate cannabis market. Some…
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